LatAm CBs ahead in the week – BBH

Analysts at BBH noted the upcoming central banks’ meeting in the LatAm space ahead in the week.

Key Quotes

“COPOM meets Wednesday and is expected to cut rates 100 bp to 9.25%.  IPCA inflation was only 2.78% y/y in mid-July, the lowest since 1999.  This is below both the 4.5% target and the 3.0-6.0% target range, and so 100 bp rate cuts are likely to continue.  Brazil then reports central government budget data Thursday, followed by consolidated data Friday”.

“Colombian central bank meets Thursday and is expected to cut rates 25 bp to 5.5%.  A small handful looks for a 50 bp cut to 5.25%.  IP and retail sales contracted in May, while CPI inflation has fallen to 4%, right at the top of the 2-4% target range.  We believe easing will continue into Q4”.